University of Nice-Sophia Antipolis IAE School of Business Administration THANG LONG UNIVERSITY Academic Year 2009 - 2011 INTERNSHIP REPORT For MASTER OF INTERNATIONAL BUSINESS AND MANAGEMENT THE INTERNSHIP ON MEASURES TO AVOID RISKS OF SEA FREIGHT IN TAN CA LOI TRADE AND INTERNATIONAL FREIGHT LIMITED COMPANY Internship carried out at: TCL Int’l Co., Ltd From 1/6/2011 to 30/9/2011 Company supervisor: Ms. Nguyen Thu Hanh - Head of Export Department Academic Supervisor: Assoc. Le Thanh Binh Submitted by: Hoang Thi Huong, AMI 1 CLASS VIETNAM, 10/ 2011 Thư viện ĐH Thăng Long University of Nice-Sophia Antipolis IAE School of Business Administration THANG LONG UNIVERSITY Academic Year 2009 - 2011 INTERNSHIP REPORT For MASTER OF INTERNATIONAL BUSINESS AND MANAGEMENT THE INTERNSHIP ON MEASURES TO AVOID RISKS OF SEA FREIGHT IN TAN CA LOI TRADE AND INTERNATIONAL FREIGHT LIMITED COMPANY Internship carried out at: TCL Int’l Co., Ltd From 1/6/2011 to 30/9/2011 Company supervisor: Ms. Nguyen Thu Hanh - Head of Export Department Academic Supervisor: Assoc.
Le Thanh Binh Submitted by: Hoang Thi Huong, AMI 1 CLASS VIETNAM, 10/ 2011 ACKNOWLEDGEMENTS I would like to show my gratitude to all who encouraged me to complete this thesis. I would like to thank Mr. Chung, Managing Director of Tan Ca Loi Company (TCL) for giving me permission to commence this thesis in the first instance, to do the necessary work and to use company data. I would also like to express my thanks to Ms.
Hanh, Head of Export Department and all staffs from this Department of TCL Company. Although they are extremely busy with their own task; they have never hesitated to assist me with any questions or problems I’ve had over the duration of my internship. I am deeply indebted to my Academic supervisor Assoc. Le Thanh Binh from Thang Long University for her great encouragement and advice during the time of writing this thesis.
I would like to take this opportunity to thank Office Representative of Dolphin Sea Air Service Corporation, Ms. Hanh, who gave me useful advices and was of great help in difficult times. My colleagues from the Department of Japanese supported me a lot during my internship. This thesis would not have been completed without their help.
Especially, I would like to give my special thanks to my husband Nguyen Anh Dung for suggesting and encouraging me to go ahead with my thesis. He spent so much time helping me for this report. He gave smart advices that improved the English of this report as well as looked closely at the final version of the thesis in terms of English style and grammar, correcting both and offering suggestions for improvement. Thư viện ĐH Thăng Long ABSTRACTS Along with globalization trend, international transportation systems have been under increasing pressures to support the growing demands of international trade and the globalization of production and consumption.
Among various means of transport, maritime transportation plays an important role because in terms of weight, sea freight accounts for 90% of all transportation worldwide. It is now without doubt one of the most exciting, challenging and complex areas of the logistics industry. We cannot deny that sea freight brings a big profit to the operator of this industry; however, they also have to face many unpredictable difficulties and risks. The freight forwarder company that I am doing my internship, TCL Company, is making his full use of the existing capacity to avoid the risks and to exist in a severe competition.
During four month internship at TCL Company, I have tried to give out risks of sea freight as much as possible based on company’s data. Among these risks, I focus on five groups of risks: transport related risks, nonpayment and late payment risks, operational risks, political risks and cultural, language risks TABLE OF CONTENTS INTRODUCTION.1 CHAPTER 1 COMPANY BACKGROUND. Company formation and development history. Scope of activity.
Review of freight forwarding business of the company (2008-2010).6 CHAPTER 2 COMPANY STRUCTURE AND ORGANIZATION CHART. Function and responsibility of each department and division. Export and Import Department:.4 Administration and human resource sector.10 CHAPTER 3 THE MISSION: ASSIGNED TASKS AND GOALS. The tasks assigned to my position.
The link between the subject matter and my mission. The goal I am asked to reach. What I can bring to the company. How can I put the theoretical knowledge acquired during my academic year in Master AMI into practice during my internship?.
International trade payment and risk insurance. International contract law. International risk management .TYPE OF RISKS. Transport-related risks .16 iv Thư viện ĐH Thăng Long 1.2 Loading and unloading.3 During transportation by sea.
Credit risk or non-payment risk:.1 Caused by agency .2 Caused by customer. Cultural and language risks. Risk of packing. Risk of storage.
Risk of declaration on AMS. Risk of customs declaration. Risk relating to weight declaration .SOLUTIONS FOR DIFFERENT KINDS OF RISKS.Transport-related risks .2 Loading or unloading .3 During transportation by sea. Nonpayment or late payment risks.
Caused by agency. Caused by customer. Cultural and language risks. Have the goals been reached?.
Suggestions/ recommendations for the company. What have I gained from the internship? .32 LIST OF TABLES .34 LIST OF SYMBOLS.35 v INTRODUCTION This report introduces you to my AMI internship. This assignment was carried out as a master internship at TCL International Freight Company. This report is divided into 5 chapters: Chapter 1: Company Background This chapter describes shortly TCL International Freight Company and its sector of activity Chapter 2: Company Structure and Organization Chart This chapter is about company organization and Department which I belong to during the internship.
Chapter 3: The mission: Assigned tasks and goals This chapter is dedicated to explaining my mission in the company and which subject is chosen to put its theoretical knowledge into practice during the internship. Chapter 4: Development This chapter addresses my own perception of problems arised from internship subject and the ways to solve them. Chapter 5: Conclusion This chapter captures the conclusion. 1 Thư viện ĐH Thăng Long CHAPTER 1 COMPANY BACKGROUND 1.
Company formation and development history Company name: Tan Ca Loi Trade and International Freight Limited Company Transaction name: TCL International Co., Ltd Abbreviation name: TCL Head office: Room 1125, Floor 11, CT5 Building, Pham Hung Str., My Dinh Ward, Tu Liem District, Hanoi, Vietnam Branch in Hai Phong city: No1, Van My, Ngo Quyen, Hai Phong Branch in Hai Phong city: No160 Nguyen Tri Phương Street, Thanh Khe District, Da Nang Website: http://www.vn TCL was established in 1996, specialized in shipping and transporting all kinds of merchandise. It has been recognized as one of the leading and most prestigious International freight forwarders. Since its inception in 1996, TCL has made great efforts for continuous development to confirm its stance in the field of freight forwarding. Besides, it is considered as a trustworthy partner by international agencies.
TCL is a member of Vietnam Chamber of Commerce and Industry (VCCI), China Global Logistics Network under WCA Family of Logistics Network-World Cargo Alliance (CGLN). It possesses a reliable global network of agents located in Asia, Europe, America, Africa, and Pacific Ocean, especially in Japan, Hong Kong and Singapore. TCL is able to provide freight forwarding services to every corner of the world, including even tough markets like the Russia and SNG countries, etc. The staff is not only well-trained and experienced.
Moreover, staff’s knowledge is constantly improved through supplementary training courses held by the general Department of Customs and the Ministry of Trade as well as regional and global conferences. TCL frequently upgrades facilities, especially the communication systems for a better service to its customers. Scope of activity Consulting service Ocean and international air freight forwarding (Terms of delivery: FOB, Exwork, CIF, To Door …) Multimodal transportation Logistics and inland trucking Customs Declaration, Certificate of Origin, Phytosanitary, Fumigation and Cargo Insurance, etc Warehouse, cargo preservation, packing, crating and dunnage 2.1 Sea Freight The stringent selection of reputable shipping lines and close relationships with Mol, K’Line, Nyk, Wanhai, Dongnama, Cosco, Maersk, Rcl, Msc, Pil, Cma, Yangming, Zim, Germatrans, Apl, Happalloyd, Ocl, Heung-A, Hyundai, Evergreen, helps TCL take advantage of their strengths in order to satisfy all its customers’ requirements. TCL offers a wide range of services: Full Container Load (FCL), Less than Container Load (LCL) consolidation and deconsolidation for general cargoes, frozen commodities, hanging garment, project cargoes, personal effects, both to port and to door.
TCL provides Import and Export services at any port to/from any Vietnam port, particularly Hai Phong port (Viconship Warehouse) and Cai Lan Port-Quang Ninh province. TCL has also signed the Liability Insurance for Transportation and Logistics companies with prestigious Insurance Firms such as Bao Viet Insurance Company.2 Air Freight Close co-operation with the leading airlines such as Vietnam Airlines, Pacific Airlines, Air France and Thai Airways… enables the company to book timely flights at customers’ request regardless of weight per shipment. On the basis of global agency networks, the cargo can be delivered to all international airports or any inland destination as per their request. Term of delivery: Warehouse to airport, airport to airport or door to door is available Air cargo insurance available upon request.
3 Thư viện ĐH Thăng Long 2.3 Warehouse service TCL possesses a large warehouse located on Truong Dinh Street (Hanoi) allowing all kinds of heavy trucks and containers to load and unload round the clock. The warehouses are equipped with crane-trucks, forklifts, all night lighting equipment and security systems which is qualified for cargo stuffing, unstuffing and safe preservation. TCL also has warehouse at Viconship Haiphong port located in No.1 Ngo Quyen Street; Van My, Hai Phong – one of the most modern seaports in Vietnam, converging all necessary conditions for export loading and import cargo discharge in a safe manner. TCL’s honest, enthusiastic, experienced and professional warehouse staff is determined to carry out the slogan: “security, safety, swiftness and convenience”.
Objective TCL is sensitive to customer’s requirements in order to provide the best service: “Safe – Swift – Competitive” 4. Slogan “Keeping quality in every service” 5. Human Resource Over 50 experienced, well-trained staffs are working for the company now. The majority have BA degree and certificate of specialist-skill internal training course and overseas as well 6.
Customers Targeted customers of TCL may be internal or oversea individuals or enterprises including manufacturing companies and even logistics companies. Below is the list of typical customers: Sumitomo Heavy Industries (Vietnam) Co., Ltd (Thang Long I.Z, Dong Anh, Hanoi) Denso Manufacturing Vietnam Co., Ltd (Thang Long I.Z, Dong Anh, Hanoi) Nichias Hai Phong Co.Z, Hai Phong) Iriso Electronics Vietnam Co., Ltd (Tan Truong I.Z, Hai Duong Province) Vietnam Stanley Electronic Co., Ltd (Duong Xa, Gia Lam, Hanoi) Hanel Co. Review of freight forwarding business of the company (2008-2010) Over the three years (2008-2010), the company has gained more than 1290 contracts, equivalent to 17,450 billion VND. Table 1 Freight services overview from 2008 to 2010 Scope of activity Number of Gross value Proportion contracts Sea freight 702 10,015 57.5% transportation Total 1290 12,450 100 Source: Company’s Accounting Department The proportion of sea freight is 57.4%, illustrating that most of the customer tend to export their cargo by sea because of the following reasons: Economic Convenient form of shipping bulk export cargo Not required to adhere to a certain schedule Compared to sea freight, air freight only counts a proportion of 26.
The reason is that it is more expensive and suitable only for quickly shipped cargoes. Standing last in the list is multimodal transportation (16. It shows that the company did not forget to concentrate its efforts on exploiting this mean of shipping. 5 Thư viện ĐH Thăng Long 7.